What’s Driving C-Store Menus?
p. 20
Customers Seek Value in Candy & Snacks
p. 38
Balancing the Backbar p. 46
CStore Decisions explores the trends, challenges and consumer behaviors shaping the core c-store categories and their subsegments.
Josh Campbell, category manager, Dash In, is being recognized with a Category Management Award for his successful solutions, from a cleaning program to coffee bar improvements. p. 12
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EDITORIAL ADVISORY BOARD
Nate Brazier, President and Chief Operating Officer
Stinker Stores • Boise, Idaho
Robert Buhler, President and CEO
Open Pantry Food Marts • Pleasant Prairie, Wis.
Herb Hargraves, Chief Operating Officer
Sprint Mart • Ridgeland, Miss.
Bill Kent, President and CEO
The Kent Cos. Inc. • Midland, Texas
Bill Weigel, CEO
Weigel’s Inc. • Knoxville, Tenn.
Dyson Williams, Vice President
Dandy Mini Marts. • Sayre, Pa.
NATIONAL ADVISORY GROUP (NAG) BOARD (RETAILERS)
Vernon Young (Board Chairman), President and CEO
Young Oil Co. • Piedmont, Ala.
Greg Ehrlich (Chair Elect), President
Beck Suppliers Inc. • Fremont, Ohio
Joy Almekies, Senior Director of Food Services
Global Partners • Waltham, Mass.
Jeff Carpenter, Director of Education and Training
Cliff’s Local Market • Marcy, N.Y.
Richard Cashion, Chief Operating Officer
Curby’s Express Market • Lubbock, Texas
Megan Chmura, Director of Center Store
GetGo • Pittsburgh
Ryan Faville, Director of Purchasing
Stewart’s Shops Corp. • Saratoga Springs, N.Y.
Cole Fountain, Director of Merchandise
Gate Petroleum Co. • Jacksonville, Fla.
Kalen Frese (Board Chairman), Director of Merchandising
Warrenton Oil Inc. • Warrenton, Mo.
Alex Garoutte, Director of Marketing
The Kent Cos. Inc. • Midland, Texas
Derek Gaskins, Chief Marketing Officer Yesway • Des Moines, Iowa
Joe Hamza, Chief Operating Officer Nouria Energy Corp. • Worcester, Mass.
Beth Hoffer, Vice President
Weigel’s • Powell, Tenn.
Brent Mouton, President and CEO
Hit-N-Run Food Stores • Lafayette, La.
Lenny Smith, Vice President
Crosby’s • Lockport, N.Y.
Dyson Williams, Vice President
Dandy Mini Marts • Sayre, Pa.
Hussein Yatim, Vice President YATCO • Marlborough, Mass.
Supplier Members
Kyle May, Director External Relations
Reynolds Marketing Services Co. • Winston-Salem, N.C.
Todd Verhoven, Vice President of Sales
Hunt Brothers Pizza • Nashville, Tenn.
Steve Yawn, Director of Sales
McLane Company Inc. • Temple, Texas
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WITH INFLATION CONTINUING TO TICK UPWARD and prices at record highs, consumers are feeling the squeeze now more than ever. As a result, they’re seeking value across categories in 2025, from discounted offerings to premiumquality products that justify a larger spend.
As more customers prioritize deals and pull back on discretionary spending, a number of categories are experiencing unit and dollar sales declines from the candy aisle to the cold vault. While many retailers are optimistic that relief is on the way, they’re also focused on innovating to meet changing customer needs, which includes growing privatelabel product lines, adjusting menus to leverage limited-time offers and highlighting promotions.
This month’s cover story, the 2025 Category Management Handbook, deep dives into the core c-store categories and their subsegments to bring you the latest trends, data, challenges and opportunities impacting each area to help you plan for the year ahead.
As market trends shift, category managers play an important role in updating product selection, optimizing pricing and introducing deals as they look to appeal to inflationweary customers. From building and maintaining strong relationships with supplier partners to leveraging data-driven insights to help make informed decisions, category managers are essential when it comes to keeping convenience stores competitive, profitable and agile in responding to evolving consumer demands.
That’s why CStore Decisions annually recognizes two category managers who are standing out for their contributions to their team. This year, we’re celebrating Josh Campbell, category manager at Dash In, and Eric Arnold, category manager at Road Ranger, in the 2025 Category Management Awards.
Campbell spearheaded a new cleaning program chainwide at Dash In and has worked on elevating Dash In’s coffee program, from the quality of the beans to store-level processes. He’s sourced new cups and creamers as well as updated fixtures in some of the stores.
Arnold launched the “Bargain Bin,” where Road Ranger customers can get unique products at a bargain price — like $1 T-shirts and $5 hoodies — and he turned it into a $500,000 program for the chain. He also redesigned the in-store layout and established an energy club card that allows customers to buy six energy drinks and get the seventh free. Learn more about our award winners on p. 12.
These awards not only celebrate the individual achievements of these category managers, but they also highlight the expertise, adaptability and leadership driving c-store category success in the industry today.
In addition to recognizing top talent, CStore Decisions also works to foster leadership development among young executives in conjunction with the Young Executives Organization through the annual 40 Under 40 Leaders to Watch list, the Leadership Discovery Program at CStore Connections and the annual CStore Momentum conference.
This year’s CStore Momentum conference, hosted by Weigel’s, will be welcoming young executives, former and current 40 Under 40 Inductees, and next-generation leaders to Knoxville, Tenn., for engaging sessions, interactive workshops, networking opportunities and an inside look at Weigel’s new commissary. Mark your calendars for Aug. 6-8. Registration will be open soon at CStoreMomentum.com.
As convenience store retailers refine and innovate across various store categories, staying attuned to key trends can help propel sales.
Operators were asked if specific types of water were long-term trends or short-term fads. According to Datassential, here are the percentages of operators who think the following water types are long-term trends:
Source: Datassential, “2025 Trends Preview Report,” December 2024
Fifty percent of Americans consume three or more snacks daily. Preferences range from new options to familiar favorites to customizability. In fact,
• 1 in 3 global consumers say they’re intrigued by new, unique, different flavors.
• Nearly 15% of consumers will pay more to customize menu items.
• 1 in 4 Gen Z snack occasions happen for stress relief.
Source: Coca-Cola Lens, “The Impacts of Rising Prices,” December 2024
When asked, “When shopping for health and/or beauty products (shampoo, deodorant, makeup, etc.) what is more important to you: brand or price?” responses over the last nine years indicate 2024 saw an increase in the importance of price.
Source: CivicScience, “The Future of Beauty Buying: 7 Key Trends to Watch in 2025,” January 2025
Among the many flavors with which retailers and manufacturers can experiment, some remain strong time and again. The top 10 flavors for sweet products — including candy, bakery items, bars, cereal and more — for the past five years are:
• Milk Chocolate
• Strawberry
• Vanilla
• Peanut Butter
• Almond
• Caramel
• Blueberry
• Cherry
• Dark Chocolate
• Banana
Source: Kerry, “Future Flavors: 2025 Taste Charts: North America | United States,” January 2025
Salty snacks are increasing in flavor variety. The fastest-growing salty-snack flavors last year included, but weren't limited to:
• Chamoy
• Dill Pickle
• Loaded Baked Potato
• Smoke
• Mexican Street Corn
• Strawberry
• Sriracha
• Adobo
• Garlic Parmesan
• Maple
Source: Kerry, “Future Flavors: 2025 Taste Charts: North America | United States,” January 2025
Josh Campbell strives to create a rewarding and elevated experience for customers to position Dash In as their go-to store. With cleanliness, quality and customer service top of mind, he achieves buy in on all levels.
Emily Boes • Senior Editor
AS C-STORE OPERATORS hit their stride in 2025, category managers are keeping inventory fresh, stocked and on trend with their customers. Josh Campbell, category manager at Dash In, which operates 58 stores across Delaware, Maryland and Virginia, is particularly excited to be on the Dash In team at this point in the company’s history.
“We are growing and innovating with the intention of changing the way our guests think about convenience retail.
It’s great to be part of creating an elevated experience at the category level from product choice to store positioning and marketing,” explained Campbell. “I love my job, and I love the company I work for.”
CStore Decisions is recognizing Campbell with a Category Management Award for his ability to collaborate and manage relationships, execute successful solutions, and stay innovative within the timelines he set.
Campbell started his career at Dash In as a bench manager four years ago. After five months, he was promoted to store manager at a Baltimore location. In April 2022, Campbell earned a new role within Dash In as junior category manager.
“To be honest, I believe the leap to the category management team was equal parts my performance at store level and a bit of ‘right place, right time,’” he noted.
Dash In was in the market for a new role to create more bandwidth within the department, and Campbell was open to learning something new and growing.
Campbell has been with the category management team for over two years, making the jump from junior category manager to category manager within that time. He handles dispensed beverages (cold, frozen and hot), alcohol, perishables, services (ice, ATM, propane, etc.) and supplies.
He enjoys collaborating with the different departments and managing vendor relationships, and he particularly appreciates working with diverse categories and the dynamic nature of his work.
“I challenge myself to truly try to be the best partner I can be. Setting goals and working together with colleagues and vendors to achieve them is always a great feeling,” said Campbell.
Campbell acknowledged that one of the toughest hurdles for category managers is meeting today’s consumers’ expectations for personal and tailored products and experiences.
“To meet these expectations, we need to stay on top of changing preferences, adapt to trends, and craft product assortments or marketing strategies that resonate with them,” he said.
Doing this, however, can be difficult given the sheer amount of data available.
“It’s not just about gathering information; the real challenge is in making sense of it all and turning it into actionable insights that align with our business goals,” he continued.
Every category manager wants each project to be highly successful, Campbell said, but to him, learning to be realistic about every potential outcome is paramount. With this perspective in mind, Dash In is growing. Its recent rebrand offers an elevated experience from menu and product offerings to atmosphere.
The c-store chain’s goal is to make each customer’s experience at Dash In a personal one.
“Increasingly, we are relying on data and insights, in addition to our own in-store experiences with guests, to ensure our offerings are what they want and the store experience is both convenient and rewarding, and they come back,” said Campbell.
Within his own role, Campbell spearheaded his first project rolling out a new cleaning program chainwide, which involved establishing more consistency with the products as well as bringing in better-quality cleaning products.
“I am especially proud of this because, coming from the field, I understood the needs from both a product quality and cost perspective,” he said.
The company is slightly over five months into the program, and just on its three main cleaning products, it has already saved a little over $10,000.
Also, for the better part of a year, Campbell has worked on improving Dash In’s coffee program, from the quality of the beans to store-level processes. He’s sourced new cups and creamers, and the fixtures in some stores that haven’t been remodeled yet are getting updated.
“Ultimately, we decided to shrink the overall offering first, get consistent with our processes that we’ve recreated, and then as we go add some limited-time offers,” Campbell said. “We can even delve into a little bit more of a self-brand … with roasts that are better specific to Dash In. And that’s ultimately the end goal. And we’ve made a lot of legwork there, but that’s where we are: simplify first, fix the processes, get consistent and then expand.”
Campbell is looking forward to customers seeing the difference once the program launches; he plans to gather feedback and continuously improve the program as it progresses.
“I’m excited to be a part of the team,” he said. “And just very fortunate I’ve been able to make the transition to where I am today.”
Eric Arnold takes on new tasks every day, welcoming the challenges that managing multiple categories brings to his day-to-day life and undertaking programs that have flourished with customers.
AS CONVENIENCE STORES TACKLE INFLATION, competition, evolving product trends and innovation, category managers must stay ahead of the curve every day to keep loyal customers and attract new regulars.
At Road Ranger, with 54 truck stops in seven states, Eric Arnold challenges himself in his category manager role to anticipate customers’ needs and find ways to keep products affordable for them.
“Although it is a lot to keep straight, because you get pulled every which way, because every category is so different, it also makes it fun, because there’s not one day that’s the same, no matter what category,” said Arnold.
CStore Decisions is acknowledging Arnold’s hard work, creative ideas and successful problem solving with a Category Management Award.
Arnold ran a family-owned maintenance company out of college, but he had family in the c-store industry and was intrigued by their accounts of daily life. When he transitioned to Road Ranger in
2014, he began by working as a merchandiser, which he did for two years before taking on the role of category manager.
“The role I started in required a keen eye for detail, strong organizational skills and the ability to work efficiently in a fastpaced environment,” he noted.
Arnold’s role over the past eight years as a category manager has expanded to include cooler; packaged beverage; candy; general merchandise; health and beauty; beer, wine and liquor; frozen; and trucker categories.
In his role, he develops and executes strategic plans to optimize sales, profitability and market share for his categories.
“This entails analyzing sales data, monitoring market trends and working closely with our stores to create an assortment that meets the evolving needs and preferences of our customers,” Arnold continued.
Arnold thrives on the different challenges each day, week and month brings. He enjoys the variety and unpredictability as it keeps him engaged, motivated and constantly learning.
One particular aspect he favors is de-
termining planograms and ensuring each item is in the best spot. “It’s like playing Tetris,” he said.
Looking ahead, Arnold is eager to grow his skills in data analysis, build even stronger relationships with vendor partners and hopefully take on exciting new projects. “I’m always excited to see all the new products and technologies that are going to hit the market over the next few years at trade shows,” he said.
Arnold is committed to looking for ways to optimize processes, embracing cutting-edge technologies and pushing the boundaries of what’s possible.
“I pride myself on knowing I have a forward-thinking mindset that can help drive the company’s success,” he said.
Since becoming category manager, Arnold has launched the “Bargain Bin,” redesigned the in-store layout and established an energy club card.
Started four years ago, the Bargain Bin was a way for Arnold to offer customers a unique product that was price friendly.
Through a partnership with a newly sourced apparel company, Road Ranger introduced $1 T-shirts and $5 hoodies.
“Customers were telling us they were going to Road Ranger specifically for these items. You’d see something posted on social media about it. And the best part was it wasn’t just, as we say, for a four-wheel customer; truckers were also excited, seeing that they had told us it’s cheaper to buy $7 worth of T-shirts than to do a week’s worth of laundry,” he said.
The Bargain Bin turned into a $500,000 program.
In addition to the Bargain Bin, Arnold redesigned the in-store layout.
“It allowed us to merchandise programs differently and have a destination within the store … and then you have the LED lights and just a newer, modern feel to what we used to have,” he said.
The redesign, which took approximately six months to complete, is now in another 15 stores that have been opened since then.
One of his most exciting programs on which he worked, however, was the energy club card that allowed customers to buy six energy drinks and get the seventh free.
“As an avid energy drink consumer myself, I noticed a lack of such programs in the category, which has been a top performer in our coolers for the past two to three years,” Arnold said.
Due to the program’s exponential growth, Road Ranger’s partners in the category have agreed to do the program again in 2025.
“To be able to incorporate that in our app was a big deal to me,” he noted.
Some of Arnold’s many different categories see the effects of inflation more than others, which affects consumer spending patterns, a phenomenon he believes is one of the biggest issues with which category managers must contend.
“That alone requires a deep reevaluation of strategies and tactics,” he said.
He is constantly trying to determine how to keep products cost effective for customers so they don’t gravitate toward bulk shopping at big-box stores as opposed to stopping inside Road Ranger stores more frequently.
“There’s a bigger demand to leverage data analytics and market insights to make informed decisions about product
assortment, pricing, performance, promotions and inventory management,” Arnold said.
Arnold spent the second half of 2024 narrowing down the promotions that worked best. He determined that promotions containing “buy” or “get” outperformed two-for or three-for deals, noting that psychologically this feels like a bigger win for the consumer.
“I still obviously wanted to try to provide the discount to the customers. I’m just trying to do that at the highest possible take rate,” he elaborated.
Going into 2025, he is using those same insights to establish the promotions that will provide the discount customers need while also increasing basket ring.
“The other piece of the puzzle is really staying on top of your pricing strategy and buying trends,” Arnold said. “Keep a pulse on what’s happening in the market and with your competitors. Be surgical about which products you put on promotion and when. And don’t be afraid to get creative — sometimes a unique spin on a classic deal structure can really cut through the noise and get customers’ attention.”
CStore Decisions explores the trends, challenges and consumer behaviors shaping the core c-store categories and their subsegments.
Erin Del Conte • Editor-in-Chief
AS 2025 UNFOLDS, convenience stores continue to adapt to shifting consumer behaviors, economic pressures and emerging industry innovations.
Inflation remains high, with the Consumer Price Index (CPI) rising 3% over the 12 months ending in January 2025, compared to 2.6% in October, 2.75% in November and 2.89% in December. While this is still an improvement from the 8% and 9% inflation rates seen in 2022, consumers are still feeling the squeeze as already-high prices continue to climb.
C-store retailers are feeling the effects of inflation on the performance of a number of key categories as customers increasingly seek out value and change spending patterns in the face of continued sticker shock. While value often translates to lower prices, it can also mean higher-quality or even premium items that justify a higher spend. Euromonitor International’s “Top Global Consumer Trends 2025” listed “Wiser Wallets” as a key trend in 2025, noting that added value is a consumer expectation across the globe in 2025 amid rising costs.
However, even as costs continued to climb, economic sentiment remained strong heading into February. At press time, the CivicScience Economic Sentiment Index rolled in at 39.4 for the week of Jan. 28, 2025, down from a 12- month
high of 41.4 on Nov. 5, but up from a 12-month low of 32.6 on May 21.
Convenience store retailers are leveraging loyalty programs and promotions to help appeal to cash-strapped shoppers. As they look to cut costs, customers — especially younger consumers — are less committed to specific brands. Taking advantage of this trend, more c-stores are adding private-label lines. They’re also driving excitement through limitedtime offers from the foodservice menu to the snack aisle.
A recent CivicScience survey found Americans are mixed on President Donald Trump’s proposed tariffs against China, Mexico and Canada. At press time the proposed tariffs against Mexico and Canada were on hold for at least a month, but tariffs on China (of which 46% of respondents to a CivicScience poll supported) went into effect on Feb.4. If the tariffs bring higher prices, two in five respondents said they would buy a different brand, while 17% said they would stop purchasing the impacted product. Some 76% of Americans polled by CivicScience plan to cut back on at least one area if tariffs start to hurt their wallets, with fast food (50%) topping the list. Travel (39%), gasoline (19%) and grocery stores (27%) were among the other categories mentioned.
Euromonitor International’s report also pointed to healthspan plans as a major trend for 2025. “Consumers are on their longevity journeys. They’re making behavioral changes now for the betterment of their future selves,” the report noted. We’re watching this play out at c-stores in terms of an ongoing healthconscious trend as consumers try out various “healthy” diets from gluten-free to keto, place greater emphasis on product ingredients, seek out better-for-you options, and increasingly reduce sugar intake. CivicScience noted those using glucagon-like peptide-1 (GLP-1) drugs
to help regulate blood sugar are also shifting to healthier daily habits, which includes drinking less alcohol. That said, indulgence still matters. When customers treat themselves, they’re looking for something truly indulgent.
Other trends highlighted in the Euromonitor report included: “Ecological” — customers are more concerned about sustainability and making wise environmental choices; “Filtered Focus” — as shoppers are inundated with choices and brands compete for customer attention, clear communication and optimized user experiences are key; and “AI Ambivalent” — companies should be transparent and purposeful as they roll out artificial intelligence (AI) to maintain customer trust and find the right balance between tech and human expertise.
With a new administration in the White House, several proposed tobacco regulations have been put on hold, giving retailers a temporary — if not indefinite — reprieve from key concerns, including a federal ban on menthol cigarettes, restrictions on characterizing flavors in cigars and maximum nicotine limits for
cigarettes, the latter of which has been deprioritized even as it moves into the comment period. However, state-level legislation remains a growing hurdle.
On the pages that follow, CStore Decisions’ 2025 Category Management Handbook is here to help you navigate the evolving trends across the foodservice, beverage, candy and snacks, dairy and ice cream, health and beauty, and tobacco categories. You’ll notice that this year’s Category Management Handbook has a new format. Instead of single-page snapshots of subsegments, you’ll find a deep-dive report on each category in order to bring you more in-depth information, including key trends, data and c-store retailer perspectives.
C-store retailers are doubling down on foodservice, with a focus on freshness, affordability and innovation and an eye toward local and healthy, to meet customer demand.
Marilyn Odesser-Torpey • Contributing Editor
AS FOODSERVICE CONTINUES TO INCREASE in importance as a key revenue center in convenience stores, retailers and experts are keeping a laser focus on what’s working in the stores and trends that are likely to affect its subcategories this year. Hot coffee, fresh bakery, chicken, roller grill, pizza, sandwiches and burritos/Hispanic foods remain core programs for most convenience stores today due to their wide appeal. Across these segments customers are showing strong preferences for value in terms of both fresh and high-quality items and affordability. Retailers are offering promotions, limited-time offers and continued innovation in the category to drive menu excitement and keep customers returning for more.
Hot dispensed coffee continues to make convenience stores destination worthy for many Americans, especially for younger consumers, according to the National Coffee Association’s (NCA) “2024 Quick Service Restaurants & Convenience Stores” report. Thirty-three percent of respondents in an NCA survey said they bought a coffee from a convenience store or gas station in the past month. Of those consumers, 44% said they bought only coffee and no other foods and beverages.
“Overall, U.S. consumers spend $7.4 billion on coffee in convenience stores annually, and $110 billion on coffee and related goods across all venues,” noted NCA CEO and President William “Bill” Murray. “Also, a whopping 99% of past-month convenience store coffee buyers were satisfied with the coffee they purchased.”
Murray pointed out that younger consumers purchase the most coffee from convenience stores and gas stations, with 40% of millennials and 37% of Gen Z buying coffee from these outlets in the past month. Younger consumers are also driving growth in specialty coffee sales made from premium-grade beans.
“Past-day specialty coffee consumption is at a 13-year high,” Murray explained. “Last year, for the first time, we
saw that more coffee drinkers (45%) had specialty coffee in the past day than had traditional coffee (38%).”
At Cubby’s convenience stores’ 39 locations in Iowa and South Dakota, coffee unit sales are down slightly, but profit dollars have marginally increased, noted Brian Davis, manager of the company’s fountain, age-sensitive and cold-vault categories. Since the third quarter of last year, the chain has been replacing the drip brewers in the c-stores with bean-tocup equipment.
He added that, in addition to brewing a fresh cup every time, the change allows the stores to give customers more choices. From the three to four varieties available in the drip pots, Cubby’s can offer up to eight roasts with the newer bean-to-cup technology.
Source: National Coffee Association, “National Coffee Data Trends,” Fall 2024
“It’s all about giving our customers the best experience to keep them coming back,” Davis stated.
Mintel’s “In-Store Bakery — US — 2024” report found in-store bakery sales were close to $19 billion last year, reflecting a growth of 5.4% over the previous year. The research firm predicted another 4.5% increase through 2028.
“Building longer-term loyalty, shopping habits and growth in the in-store bakery will require a healthy balance of indulgence and meeting everyday needs,” the report suggested.
The report noted that exponential growth in the category will slow as inflation cools. However, the bread, bun and breakfast bakery segments are expected to “pave the path for future growth.”
Breakfast is big business for the in-store bakeries at Kwik Trip and Kwik Star stores, which have 900 locations in Wisconsin, Minnesota, Iowa, Michigan, Illinois and South Dakota. The stores bake between 25 and 30 different items every day, said Paul Servais, retail food service director for the company.
“We have it all — multiple varieties of doughnuts, muffins, cookies, cinnamon rolls, bars and brownies — and they all do well,” Servais explained. “Our central bakery makes the products and ships them frozen to the stores where they are thawed and frosted.”
Items are available in a self-serve format and prepackaged for grab and go. Bakery sales are consistently increasing at Kwik Trip and Kwik Star, which Servais attributed to heavy promotion — including rotating sales prices — and continued innovation.
“We do a lot with limited-time offers, and we have some new doughnuts and flavors of cookies we’re excited about for this year,” Servais noted.
Innovation on the menu can create new occasions and so can getting creative with pairings and merchandising that embrace the full power of the perimeter, Mintel emphasized.
“Social media engagement, daily specials and even in-store experiences
In-Store Bakery Market Size 2024: $18.76 B
In-Store Bakery Growth in 2024: +5.4%
In-Store Bakery Long-Term Growth Expected through 2028: 4.5%
Source: Mintel, “In-Store Bakery — US — 2024,” March 2024
can draw consumers into the bakery and inspire intentional visits to this department,” the report concluded.
Chicken remains a popular foodservice offering, with c-store sales bolstered by customers’ love for the product and heavy promotional activity by the stores, retailers reported. For many consumers, it is the ideal convenience food.
“Chicken tastes good, it’s versatile, it’s not very messy and it doesn’t require a condiment,” explained Jessica Russell, food service director at Clark’s Pump ‘n Shop, which has 68 locations in Ohio, Kentucky and West Virginia, 75% of which offer either Krispy Krunchy Chicken or Champ’s Chicken. “Tenders sell the best, but we also sell a healthy number of bone-in pieces.”
In recent months, Clark’s has scaled
down its chicken menu to encourage more pairings with sides and other ancillary items. For 2025, Russell said, the company is focusing on innovation through limited-time offers, value deals and a strong advertising program to back up its in-store promotions.
At SunStop Markets, fresh fried chicken is “the hero” of the company’s Eats Southern Cookin’ foodservice brand, noted Michelle Weckstein, director of food and beverage brands. The program is available in 34 of the 81 SunStop stores in Georgia, Florida and Alabama.
“Chicken accounts for at least 40% of our prepared food sales,” she continued. “Among our customer favorites are our jumbo tenders, eight-piece pack and fried livers and gizzards.”
A few years ago, SunStop added baked chicken to its menu to accommodate customers on the keto diet.
In convenience stores, fried chicken sales were expected to see a compound annual growth rate of 11.6% from 2023 through 2025, leading growth among chicken subcategories, according to data from Foodservice IP.
“It sells incredibly well in some of our stores,” Weckstein said. “Now everyone is on the GLP-1 (glucagon-like peptide-1) weight-loss drug, and they want it, too.”
Weckstein predicted that the chicken category should continue to grow because it is the least expensive protein next to pork.
“The cost of chicken for the entire year rose only 1% while beef went up 15%,” she explained. “But bird flu can change the commodity price.”
Pizza consumption in the U.S. is stable, with over half of consumers saying they have maintained their pizza consumption over the last year, said Mintel’s “Pizza — US — 2024” report. It stated that convenience and affordability remain key factors in pizza consumption.
For 2025 and 2026, Mintel predicted that ready-to-eat hot pizza consumption will grow “as retailers improve offerings to better compete with restaurants on quality and freshness at lower prices.” The report noted that younger consumers, in particular, will drive this growth. Looking ahead to 2027 and 2028, Mintel foresees growing health concerns that will require brands to offer healthier crusts, plant-based options and more flavor varieties.
At the 20 of Cliff’s Local Market’s 22 locations in New York where pizza is available, sales in the total category (slices
and whole pies) increased 6.7% over the previous year, said Derek Thurston, director of foodservice operations, Cliff’s. Slice sales rose 2.54% and whole pies 15.65%.
Total pizza same-store sales climbed 12.61% in November and December. Slices went up 10.57% and whole pies 18.09%, he continued.
While pizza remains a fan favorite, customer behavior is evolving.
37% of consumers that have decreased their pizza consumption are trying to eat healthier.
38% of millennials eat pizza for lunch.
45% of millennials eat pizza for dinner.
Source: Mintel, “Pizza — US — 2024,” March 2024
“For this year, I see continued growth as we continue to innovate in this space,” Thurston noted.
According to Mintel, retailers can boost their pizza sales by highlighting its adaptability across all dayparts. The report suggested that retailers focus on “building out the lunch occasion.”
“Younger consumers are less restricted to having pizza for specific dining occasions compared to older demographics, who tend to view pizza as an evening meal,” the report said.
At Cliff’s, pizza sales are strong from the morning breakfast daypart through dinnertime, Thurston pointed out.
“At breakfast and lunch, we sell a ton of slices, then sales switch to whole pies in the evening,” he said. “We make sure we have pizza out in front of our customers all the time.”
Innovative twists on comfort classics, locally sourced ingredients and the use of different condiments and sauces to create different flavor profiles are whetting customers’ appetites for hot and cold sandwiches, retailers reported.
At Alltown Fresh, which has 16 locations in Massachusetts, Connecticut, New Hampshire and New York, Jac Moskalik, vice president and head of food, innovation and strategy, sees younger customers gravitating toward new twists on the comfort foods they loved as children.
Sandwiches at convenience stores were predicted to see a modest compound annual growth rate from 2023 through 2025, with hot sandwiches and burgers leading the growth.
he explained.
This year, both Alltown and Dandy are looking to expand their cold grab-andgo selections. Moskalik pointed out that Alltown is also working on strategies for leveraging sandwich sales into the evening daypart.
While many convenience stores’ offerings have expanded far beyond hot dogs and sausages, retailers still describe the roller grill as integral to the success of their foodservice programs and storewide sales.
Source: Foodservice IP, “C-Store Foodservice Outlook and Opportunities,” 2023
“It could be a BLT or grilled cheese with an unexpected ingredient or a different kind of carrier like a croissant, pretzel bread or different wraps; Gen X and millennials like to combine the familiar with something new,” Moskalik explained. “To keep the menu new and fresh, we’re also coming up with a huge increase in limited-time offers with the help of our suppliers.”
She added that these younger customers like to hear the supplier stories behind the sandwich ingredients, such as ham and cheese, especially if they are locally sourced.
“We’re heavy on local ingredients,” she said. “Customers are also interested to know that we use clean ingredients.”
James Fry, foodservice director for Dandy Mini Marts, which operates 63 stores in Pennsylvania and New York, uses different sauces to develop unique flavor profiles for the stores’ sandwiches.
“Whenever possible, I’m using ingredients we already have in the store to avoid adding other PLUs (price look-up codes),” Fry explained. “Our customers like different flavors, but not too much outside the norms.”
Some customers at Dandy have been asking for keto-friendly wraps, so Fry said he is looking into those. Trying different breads will be a focus for the second half of this year to the first half of next year,
Cenex Zip Trip uses the roller grill “as a hook to sell beverages and other snacks at our stores,” explained Jon Fleck, merchandising manager for the chain, which has 38 stores in seven different states. Twenty-five of the stores have roller grills.
“In roughly 14 of our stores, this foodservice option is in addition to nationally branded offerings, including Hunt Brothers
Although many attributes would motivate customers to order from the roller grill, above all they want variety and reassurance that offerings are high quality and fresh.
Source: Datassential, SNAP! Keynote C-Store Foodservice report, January 2023
Cheese and bean top the list of most popular burrito ingredients. Cheese is expected to reach 75.9% menu penetration by 2027. Ingredients below are ranked by total menu penetration.
Source: Datassential, “The Word of Burritos,” updated April 2024
Pizza and A&W,” Fleck noted.
Early last year, Zip Trip stores dropped the retail price on roller grill items, despite increasing protein costs, to sell more products throughout the stores.
“In most of the markets we serve, we saw a 45% increase in the number of units sold, with a much smaller increase in dollar sales,” Fleck said. “But we feel it helped increase sales of other complementary items.”
He noted he expected to see “a steady increase” in roller grill unit sales throughout this year.
According to Philip Santini, senior director of advertising and foodservice at Rutter’s, which has 88 convenience stores in Pennsylvania, West Virginia and Maryland, the roller grill is “a very large part” of the company’s extensive foodservice program.
“The hot dog has always been the star of the show in this category because it’s hot and readily available for on-the-go eating,” Santini explained.
The roller grill offers “a lot of opportunity for expansion of flavor profiles,” and Santini noted that Rutter’s also features a number of different sausage varieties, roller bites and tornados and is looking to continue to expand its offerings.
“We’re seeing a lot of chicken items and more flavors of hot dogs and sausages, and we’re looking at all of those,”
he added. Santini expects roller grill sales to be consistent throughout 2025. He is planning to promote the products as snacks and appetizers as well as meal solutions at Rutter’s.
Burritos and other Hispanic foods are boosting foodservice sales for convenience store retailers with their versatility and mainstream appeal.
Since becoming a proprietary concept in the late 1990s, Kwik & Fresh Mexi has evolved into “a big part of the deli program” in the select Kwik Stop Convenience Stores where it is offered, noted M. David May, director of food services.
Five of the company’s 27 stores in Nebraska and Colorado currently feature
Onvo introduced its Craveritos — its signature toasted burrito program — in early 2024.
Kwik & Fresh Mexi, and it’s soon to be six when store No. 28 is completed.
To say the concept is integral to the foodservice programs in those stores is an understatement, according to May.
“In these stores, Kwik & Fresh Mexi represents about 20% of overall deli sales across the day,” May explained. “What’s even nicer is that our gross profit margin from this concept is 65%.”
May stated that burritos and tacos lend themselves to a wide range of applications that do not require bringing in new ingredient SKUs. For the five-layer burrito, a former limited-time offer and now permanent menu item, for example, he only had to bring in Spanish rice.
“We quickly found out that the Spanish rice itself sells like gangbusters,” he said. “Now we sell it by itself in small, medium and large containers.”
In early 2024, Onvo convenience stores, which has 40 locations in Pennsylvania and New York, introduced a new program called Craveritos. Its signature toasted burritos can be filled with anything from traditional Southwest- and Mexican-inspired ingredients to American fusion offerings such as barbecued pulled pork, said Harman Aulakh, vice president of marketing for Onvo.
“Also on the menu are breakfast tacos and bowls that utilize the burrito fillings minus the tortilla,” he continued. CSD
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With 47 percent growth in menu penetration, this product is reshaping the way operators drive revenue.
FOR MORE THAN 30 YEARS, Krispy Krunchy Chicken® (KKC) has been the go-to foodservice solution for c-store operators, offering a license to craveable, high-quality Cajunstyle fried chicken with an easy-to-implement store-in-store model. After a record-breaking 2024—with 605 new locations and finding success with its award-winning Cajun Chicken Sandwich—the brand is rolling out what could be its most impactful launch yet: chicken nuggets.
“Convenience stores need profitable, high-velocity foodservice offerings that are easy to execute,” says Chef Ray Kees, KKC’s director of culinary innovation. “Our nuggets deliver on every front—exceptional quality, operational ease, and a price point that keeps both operators and consumers happy.”
Why nuggets, and why now? According to Datassental, chicken nuggets are the fastest-growing chicken item in the U.S., with a 47 percent increase in menu penetration over the past four years.
“Our nuggets are whole muscle, all-white breast meat, marinated in a proprietary blend of seasonings and coated in a special breading,” Kees says. “You’re not getting choppedand-formed pieces or mystery meat here. We tasted a lot of chicken nuggets on the market, and we’re confident these go toe-to-toe with the best—and, honestly, I think they’re the best. The meat is juicy with just a little bit of zest, and the breading delivers a satisfying and flavorful crunch that makes them even more craveable. What sets them further apart is the value equation. Operators see better margins, and consumers get a higher-quality product at a better price point.”
That price point matters. KKC’s nuggets are designed so that convenience stores can deliver an affordable option to consumers while achieving higher profitability per unit sold. Beyond individual sales, KKC has a proven track record of boosting revenue for convenience store operators. On average, retailers that install a KKC program see foot traffic increase by 10–12 percent and overall merchandising sales rise by 15–20 percent. Based on early market tests, the addition of nuggets is expected to drive those numbers even higher.
“Our menu efficacy study suggested that adding chicken nuggets will increase menu appeal and customer purchase frequency,” Kees says. “Market tests confirmed that hypoth-
esis. We expect customers to purchase nuggets as meals and snacks, and also as add-ons to existing offerings.”
KKC’s nuggets were designed for seamless execution within existing convenience store kitchens, requiring minimal prep while maintaining the brand’s signature quality. “With limited prep and improved packaging, operators can get nuggets in customers’ hands quickly and efficiently,” Kees explains. “We took what we believe is the ideal chicken nugget and made it operationally efficient to work in our operators’ systems.”
Speed of service is only part of the equation. Retailers will receive comprehensive merchandising kits featuring pump signage, window displays, and in-store promotions designed to drive impulse sales.
The launch of Krispy Krunchy Chicken Nuggets represents what the brand calls a true “win-win-win” for the entire c-store ecosystem. Consumers get a high-quality, craveable product at an unbeatable value, operators see higher sales and profitability, and KKC continues its mission of serving ridiculously good fried chicken while expanding its national footprint.
“Operator success is always our North Star,” Kees says. “The brand will continue to deliver on our promise of craveability, convenience, and quality. The launch of nuggets takes that mission even further.”
- By Drew Filipski
Added benefits are in high demand across the beverage category, with health-conscious attitudes shaping trends in 2025.
Emily Boes • Senior Editor
IN 2025, FUNCTIONAL BENEFITS such as added protein, hydration, vitamins and more are gaining noteworthy ground among customer demand, and manufacturers are responding with healthier options. C-stores that keep up with innovation and health trends are likely to snag customers who are increasingly conscious of what they’re putting in their body.
Retailers across the nation agree that energy drinks have become an increasingly important and leading category within beverages.
The energy drink category clocked $14.5 billion at c-stores for the calendar year 2024 ending Dec. 29, the secondlargest share of beverage dollars behind beer, according to market research firm Circana. Energy drinks were the most lucrative segment, with c-stores raking in $14 billion here, while energy shots dropped 7.4% in dollar sales and 8.7% in unit sales. Energy drink mixes, however, increased in sales by 8.4%.
Roadtrac, which operates 23 stores in Texas with another two expected to open in 2025, has witnessed customers bypassing traditional energy shots in favor of
energy drinks, particularly low-calorie options with functional benefits.
That said, not every c-store operator is feeling an energy shot dip.
“Energy shots are a segment that continues to perform well for us,” said Sean Carroll, director of category management, Good 2 Go, which operates 81 stores in seven Mountain states. “Rather than cannibalization, we see poly use among energy customers. There are several innovators — (like) Bucked Up with their Buck Shots — in this space, along with 5-hour Energy that has expanded flavor options, as well.”
Although energy shots are trending down (-7.4% in dollars and -8.7% in units), energy drinks are staying relatively flat in unit sales (0.9%) and increasing in dollar sales (3.5%).
Source: Circana OmniMarket, Total U.S. Convenience data for the 2024 calendar year ending Dec. 29, 2024
Sports drink and bottled water dollar sales were flat for 2024 (0.1% and 1.4%, respectively), while unit sales showed small decreases. Sports drink mixes, however, grew astronomically, up 136% in units. Among water, flavored seltzer/sparkling/mineral water had the largest boost in sales, 22.7% in dollars and 12.6% in units.
Source: Circana OmniMarket, Total U.S. Convenience data for the 2024 calendar year ending Dec. 29, 2024
He noted energy is likely to remain a top-performing category at his stores, with a shift toward options customers perceive as cleaner and healthier. He predicted energy drinks will lead beverages in 2025.
At Roadtrac, there is a significant rise in functionality of caffeinated energy beverages. Zain Sunesara, managing partner of the chain, named Celsius, Alani Nu and Ghost as examples and noted growth in this sector is being driven primarily by younger consumers, specifically those aged 30 and under.
“Many of these new companies currently on our shelves just came on the market post pandemic,” he said. “… There are a ton of new players and competitors coming into the energy sector, but also a ton of increasing demand as well from customers. We believe this
category will continue to flourish and grow in the years to come.”
Danielle Pelland, Exchange merchandising VP, consumables at Army & Air Force Exchange Service (AAFES), has noticed constant innovation within the energy segment, both with new flavors as well as functional, organic, natural and low-sugar options.
AAFES operates over 560 convenience and specialty stores worldwide.
Four in 10 Americans are looking to boost their energy, based on Brightfield Group’s Wellness Survey, with 40.8% of respondents in Q4 2024 agreeing they often rely on products for energy.
“A big thing with energy is looking for cleaner options. Right now it’s tons of caffeine, but maybe it’s got B-12 in it, or maybe it’s got other functional benefits,” said Julie Murphy, director of
insights for Brightfield Group.
New energy flavors can also make a positive difference to the category, as they are at Good 2 Go. Candy-inspired drinks, in particular, have attracted a wider audience.
“I believe the diversification has appealed to a younger, more adventurous consumer looking for something different. These beverages are also being propelled by social media, pushing customers to come into our stores looking for these new innovative offerings,” said Carroll.
Energy drinks aren’t the only beverages where c-store customers are looking for functionality.
Roadtrac is seeing an increase in sales for enhanced waters.
Carbonated beverages experienced a 1.7% uptick in dollar sales despite a 2.9% dip in unit sales for the past year. During this time, price per unit increased 4.8%.
Source: Circana OmniMarket, Total U.S. Convenience data for the 2024 calendar year ending Dec. 29, 2024
“Consumers are looking for drinks that not only refresh but also provide added benefits, whether that is enhanced hydration, sustained energy or cognitive focus,” said Sunesara.
At Jump Start, with 33 convenience stores in Kansas, enhanced water and sports drinks are among beverages that have significantly grown.
“These categories align with evolving consumer preferences for beverages that provide hydration, energy and additional health benefits,” said Marco Calderon, senior category manager for Jump Start Stores.
Calderon pointed to Liquid Death, Prime and Liquid I.V. as products that will help shape the beverage category in the year ahead, propelled by marketing tactics such as podcast sponsorships and social media outreach.
“Brands like these are meeting consumers right where the demand exists, continuing to evolve their place in the market in exciting ways,” he added.
Both hydration-focused beverages and energy drinks, especially those linked to influencers, athletes and streaming culture, have gained traction at Jump Start, and the mix-and-match approach has been a “winning formula,” according to Calderon, and is likely to continue.
AAFES, too, is seeing water poised for growth, as well as isotonic beverages. In line with overall consumer health trends, a focus on occasions and lifestyles will continue into 2025.
“Consumers want more from their beverages, not just good taste and hydration,” said Pelland.
Although bottled water unit sales have dipped slightly in the 52 weeks ending Dec. 29, 2024, per Circana (-2.6%), dollar sales have maintained a 1.4% uptick.
Among bottled water subsegments, nonflavored still water took the largest share of dollars, while flavored sparkling water saw the largest percentage increase of unit sales (12.6%).
A standout segment, according to Roger Dilworth, senior analyst at Beverage Marketing Corp., is coconut water.
“Coconut water has been somewhat of a surprise, but it benefits from a high potassium content. Most Americans are deficient in potassium, and nutritional supplements are capped at 99 milligrams, compared to a daily dietary requirement of about 4.5 grams. Thus, coconut water is an easy way to bridge this wide gap,” he said.
Coconut water saw 1.5% year-overyear growth, based on Brightfield Group research. And electrolyte water notched 0.8% year-over-year growth, with 11.1% of U.S. adults purchasing it in Q4 2024.
Also among Brightfield Group’s recommended beverages to keep an eye on is cactus water.
For sports drinks, non-aseptic options were flat in 2024, while sports drink mixes shot up in sales by 114.8%, led by Liquid I.V.
Carbonated soft drinks (CSDs) is a dominant segment at Jump Start. Calderon expects this and all beverages to continue to see momentum, especially with planned promotions in foodservice.
“For example, we’re currently offering a Pepsi for $1 with the purchase of our Pulled Pork Sandwich, which is not only a great value but also an enticing deal for customers,” he said. “This new partnership with Pepsi helps develop a customer-centric value bundle that pairs with what we are doing in foodservice.”
CSDs will also be a positive force at Good 2 Go, noted Carroll. Like Calderon, he believes partnership is an area where c-store retailers should focus, between beverages, food, snacks and candy.
At Roadtrac, while the CSDs are still a core category, it’s beginning to show slower growth as customers shift toward low-calorie and low-sugar alternatives.
Carbonated beverages logged $10.8 billion at c-stores in 2024 ending Dec. 29, per Circana, a 1.7% increase. However, likely due to a 4.8% climb in price per unit and a shift toward healthy, unit sales fell by 2.9%. As c-store operators evaluate their beverage planograms, they might consider adding more functional sodas, if they haven’t already.
Better-for-you soda is a growing trend among consumers, the most well-known being prebiotic options such as Olipop and Poppi.
“Brands such as Poppi and Olipop, which offer fun, innovative and betterfor-you soft drinks, are emerging as a segment with huge potential. Growth is likely to continue throughout 2025,” said Pelland.
Prebiotics typically are higher in fiber, and 11% of U.S. adults have purchased a prebiotic/probiotic supplement in the last three months, according to Brightfield Group.
“Fiber (is) included in the soda so people can feel like they’re getting some kind of benefit by having a soda and getting a piece of their daily intake of fiber,” said Kate Stevenson, director of client strategy at Brightfield.
“(These sodas) had that nostalgia feel, too,” added Murphy. “It was bringing back grape and orange and all those flavors that we drank growing up back in the ‘80s and ‘90s.”
Aseptic juices led the juice category in sales, rising 18.4% in dollars and 15.8% in units. Canned juices followed, with a 9.3% lift in dollar sales and 4.7% increase in unit sales. Ready-to-drink (RTD) and refrigerated teas and coffees saw a decline in sales, although RTD tea/coffee is still a $3.67 billion dollar category, and bottled juices brought in $1.65 billion.
Source: Circana OmniMarket, Total U.S. Convenience data for the 2024 calendar year ending Dec. 29, 2024
Flavors continue to be important among juices and teas, as well. At Good 2 Go, Arizona Iced Tea is popular due to its large size and affordable price point, which often makes it a go-to beverage for casual tea drinkers in the chain’s locations, noted Carroll. It also has a wide variety of flavors, and top flavors at Good 2 Go are green tea, mango, peach and raspberry.
Brightfield Group also named aguas frescas as a juice with refreshing and diverse flavors.
Aseptic juices have grown by 18.4% in dollars at c-stores for the calendar year ending Dec. 29, 2024, per Circana, and the segment upped by 15.8% in units. Canned juices, too, have seen growth, 9.3% in dollars and 4.7% in units.
On the other hand, bottled juice and refrigerated juice sales have declined (-4% and -8%, respectively).
Canned and bottled tea sales at c-stores stayed flat in 2024 (-0.8%), although units declined by 5.9%.
Ready-to-drink (RTD) teas, among other beverages, are expected to be weak, Dilworth explained, as even though price increases may have plateaued, they remain at higher levels than pre-pandemic, which could dampen demand.
At AAFES, juice sales are falling, a trend Pelland expects to persist for the next five to 10 years.
Roadtrac, however, noticed juices and
teas stayed relatively flat at all locations, although it saw an increase in cold and pre-packaged coffee from the coolers.
Retailers looking to boost category sales can focus on high-volume brands, Pelland advised, as well as prioritizing first-to-market innovation and using must-buy offers to build the basket, strategies which can be applied across beverage segments.
Outside of packaged beverages, many dispensed beverages have garnered their own fans. In fact, Pelland believes more c-store retailers should focus on innovating flavors in the cold/frozen dispensed segment.
At Jump Start, the dispensed lineup includes Pepsi, Coca-Cola and Dr Pepper.
“It’s interesting to see how preferences shift by region,” Calderon reflected. “For example, when I worked for a retailer in Iowa, Mountain Dew dominated the market. Now, being just a few states over — and originally from Texas, where Dr Pepper has deep roots — it feels like familiar territory seeing its popularity again.”
So far in 2025 and throughout 2024, fountain drinks have been strong at Roadtrac. That said, the category is beginning to show slower growth.
Customer preferences are beginning to lean toward smaller and budgetfriendly cup sizes, but regular customers still prefer large cups.
To grow sales, Good 2 Go invested heavily in its fountain equipment, drink variety, syrups and recipes, and the chain has seen substantial gains over the last few years.
“Fountain sales are very strong in our market, where we compete not only with c-stores and quick-service restaurants, but also with some very successful soda
Coca-Cola data show which flavor has the highest index at Coca-Cola Freestyle machines in the c-store channel at the top of each hour.
Source: Coca-Cola Freestyle data for c-store channel, 2024
While beer raked highest in alcohol dollars, it still declined in case sales by 3.7%. Premixed cocktails jumped in sales the most (54.2% in cases and 49.8% in dollars), with spirits-centric seltzers following at a 22.4% lift in cases and 23.3% boost in dollars. Wine-centric seltzers saw the biggest drop, down 60% in dollars and 59.3% in cases.
Source: Circana OmniMarket, Total U.S. Convenience data for the 2024 calendar year ending Dec. 29, 2024; Case Sales — Beer: per 288 fluid ounces (24-by-12-ounce cans); Case Sales — Wine & Spirits: per nine-liter cases (12-by-750-milliliter bottles)
shops,” said Carroll. “… The increase in popularity of ‘Dirty Soda,’ which is a mix of creative soda combinations and flavored syrups, has led to robust sales gains. Dr Pepper recently released Dirty Dr Pepper after seeing some pretty startling numbers amongst the stores in our areas.”
AAFES, even as it expects demand to be down, has decided to add new bubblers to expand its cold dispensed offerings in 2025.
Among alcoholic beverages, beer is the highest-grossing segment, topping $25 billion in sales in 2024, per Circana.
At Good 2 Go, beer is the dominant category, of which larger packages of popular brands including Bud, Coors and Miller perform well. Corona and Modelo have “also carved out a strong, almost iconic presence,” said Carroll.
Within flavored malt beverages (FMBs) at the chain, Twisted Tea is highly ranked, while wine-based cocktails are salvaging the wine segment.
FMBs and RTD cocktails are the strongest-performing alcohol segments at Roadtrac. “Consumers are drawn to
convenience and variety, which is making single-serve and multipack options popular,” said Sunesara.
While beer remains popular, the chain is seeing demand increase for premium, craft and imported brands.
Still, alcohol sales are dipping slightly due to customers opting for healthier alternatives. To boost the segment and appeal to these health-conscious consumers, Roadtrac is emphasizing marketing better-for-you alcoholic options, such as hard seltzers, organic wines and beverages with lower alcohol by volume (ABV) percentages.
Heading in the opposite direction from Roadtrac, Jump Start customers prefer “blue-collar” beer brands such as Natural Ice, Busch Light and Keystone (although the chain stocks a select number of local beers in a limited number of stores), but Calderon noted the biggest shift in alcohol trends is toward flavored options across multiple categories.
Hispanic-inspired flavors, for instance, are gaining traction.
“Cheladas from Modelo and Bud Light have seen strong growth, with flavors like Picante, Limón y Sal, Sandía and Mango (my personal favorite) gaining
popularity,” said Calderon. “This trend aligns with the broader demand for bold, authentic flavors in beverages.”
Jump Start is also noticing growth in Jack Daniel’s and Cayman Jack, catering to customer demand for RTD convenience with real spirits.
At AAFES, RTD tequila and American whiskey are trending upward. “There’s also a noticeable growth in premium and high-proof spirits,” said Pelland.
For beer, current trends suggest double-digit growth in non-alcoholic beer, declines in craft and premium driven by demographic shifts to more flavorforward choices, and flat performance in value areas. Pelland also noted a growth in FMBs.
Wine, however, is likely to be flat or down, although innovation in wine RTDs, 500-milliliter bottles and high-ABV wines could spark growth.
The range of preferences at different chains suggests alcohol is a category that can largely be affected by region. Still, Circana data shows total beer sales at cstores have been flat in 2024 (-1.1%) and FMB, premixed cocktail and spirit-centric seltzer growth (6.5%, 49.8% and 23.3%,
CSD
Rising prices are putting pressure on candy and snack sales, but innovation is a bright spot.
Erin Del Conte • Editor-in-Chief
AS INFLATION HAS PUSHED PRICES higher, customers are feeling the pinch in the candy and snack aisles.
Customers are “absolutely looking for value,” said Randy Adams, category manager for Martin & Bayley Inc., which operates more than 130 Huck’s Market locations across Illinois, Indiana, Missouri, Kentucky and Tennessee. While he expects the economy to steadily improve in 2025, he pointed out that customers are still struggling financially, which means some luxuries remain out of reach.
“In other high-inflation years, candy was the cheap indulgence to make up for the loss of those luxuries. I don’t think that’s the case now,” he added.
Richard Perry, category manager for Nouria, which operates more than 170 c-stores in New England, concurred that inflation is impacting the candy and snack categories and driving customer demand for value.
“I think this is one of the reasons private label had its best year in 2024,”
he said. “We will still see customers less price sensitive due to the nature of being a convenient option, but we keep an eye on our market to make sure we are priced appropriately.”
Beyond value, customers are also seeking new flavors and combinations, Perry noted. “Whether this is driven from innovation or limited-time offers (LTOs) or (what’s) popular on social media, customers are coming into c-stores looking for interesting items. You still need the top items, but I think there are more opportunities to cut innovation into core sets.”
The National Confectioners Association (NCA) told CStore Decisions that consumers are continuing to make room in their budgets for chocolate and candy in 2025.
What’s more, different generations are showing specific candy preferences.
Chocolate makes up the largest segment of the $48 billion confectionery
industry, per NCA, with milk chocolate topping the list as Americans’ favorite chocolate (40%), followed by dark chocolate (28%) and white chocolate (7%). Meanwhile, 26% “would be happy with any variety.” Some 47% of consumers prefer chocolate mixed with ingredients such as caramel, peanut butter, almonds and peanuts. Millennials are most likely to choose chocolate that contains other flavors, while Gen Z gravitates toward plain chocolate sans inclusions. Caramel has the largest appeal across generations, NCA pointed out.
Gen Z and millennials are driving growth in the non-chocolate segment, NCA noted. “They are most likely to browse the aisle for something new and purchase their candy online, often turning to YouTube, TikTok and Instagram for confectionery inspiration. In fact, the share of online confectionery sales increased by more than 15% between 2023 and 2024 — a pattern we expect to continue in the future,” NCA told CStore Decisions.
While the chocolate candy category dipped overall, snack size, novelty and sugar-free chocolate all saw large upticks for the 2024 calendar year ending Dec. 29, 2024, according to Circana.
Source: Circana OmniMarket, Total U.S. Convenience data for the 2024 calendar year ending Dec. 29, 2024
Sugar-free diet candy was the only segment that saw an uptick in unit sales (1%), while novelty non-chocolate candy saw the biggest dollar sales rise (8.4%) for the 52 weeks ending Dec. 29, 2024.
Source: Circana OmniMarket, Total U.S. Convenience data for the 2024 calendar year ending Dec. 29, 2024
But Gen Z and millennials are also more likely than older generations to make confectionery purchases at convenience stores, NCA explained.
Still, chocolate sales overall fell 2.9% in dollar sales and 5.9% in unit sales in the c-store channel for the calendar year ending Dec. 29, per Chicago-based research firm Circana. Non-chocolate candy dollar sales rolled in flat (0.1%) with unit sales down 5% for the same period.
At Huck’s Market non-chocolate overtook chocolate in total sales in 2024.
“I’ll be watching that closely to determine space allocations in 2025,” revealed Adams.
But Adams isn’t optimistic on the candy sales outlook for the year. “I’m afraid I expect sales to slow in 2025 due to pricing,” he said. “I think the entire industry is getting to the ‘insult pricing’ point.”
At Rutter’s, gummies are seeing big growth both in sales volume and “new innovation” items. “As cocoa prices continue to push chocolate retails higher, gummy and peg-bag candy have given consumers a perceived added value,” said Cameron Baer, center store category manager, The Rutter’s Cos., which operates 88 locations in Pennsylvania, Maryland and West Virginia. “This year we
will lean into this innovation by expanding our sets within this space.”
In 2025, Perry is watching to see how LTOs perform — whether it be privatelabel items or new offerings from major brands. “Innovation is driving excitement and incremental sales,” he noted. He’s also watching the premium chocolate trend, wondering if customers will continue to treat themselves to higher-quality products or better-for-you brands or if they will suffer from inflationary pressures.
Nouria is also keeping an eye on Dubai chocolate and other social media trendy products and is watching to see if there will be more innovation with new fillings and textures in 2025. Further, Nouria is watching whether lower sugar, sugar alternatives and/or functional candy become larger players in the channel.
In 2025, Perry expects candy sales to end up flat or slightly higher than 2024.
“With our investment into the market through remodels and new-to-industry (NTI) stores, strong private-label portfolio, innovative products and working with our valued partners to promote, I think we will be able to navigate some of the challenges to the category in 2025,” Perry said.
He anticipates that those challenges will include rising cocoa and product costs
and regulatory pressure. He acknowledged that consumers may not have the same discretionary income for treating themselves or will seek out value options.
What’s more, as an increasing number of Americans treat diabetes and obesity by becoming glucagon-like peptide-1 (GLP-1) users — i.e taking GLP-1 agonist medication to help lower blood sugar levels — there’s an increased trend toward everyday Americans watching their sugar intake. Circana reported sugar-free chocolate candy rose 30% in dollar sales and 29.5% in unit sales in 2024.
“A growing number of GLP-1 users will contribute to a difficult environment for candy in 2025,” he said.
At convenience stores, overall gum dollar sales came in flat (1.5%) in 2024, with units down 3.2%, per Circana.
Nouria, by contrast, saw strong gum sales in 2024, up more than 10% in sales. “I think we will have a good year in 2025 as well, but maybe not as high of growth,” Perry said. Nouria saw more customers trading up to larger bottles/ packs of gum in 2024, a trend Perry expects will continue this year.
“Consumers are clearly paying more
for a larger pack, understanding the value versus a single pack gum,” Perry said. “We had a big focus in our planograms as well. We were able to partner with manufacturers as well on promotions, and those brands performed the best.”
In terms of gum brands, Perry is watching to see how Ice Breakers Flavor Shifters and other combo-flavor gums perform, as well as whether more brands introduce gums with added benefits, such as functionality or energy, like Rev.
“There is some data that GLP-1 users are buying more gum — that will be interesting to watch,” he added.
When it comes to salty snacks, Adams is anticipating sales that are flat or have only a slight uptick. Pricing hasn’t been “as overheated” in salty snacks compared to other segments like candy.
In 2024, salty snack dollar sales were flat (-0.2%) with unit sales down 4.3% in the c-store channel, per Circana.
Baer sees bold flavors continue to dominate snacks in 2025. “This year’s trend appears to be a combination of flavors in the same package, such as the new Planters Duos items, to bring variety in one package,” Baer added.
At Nouria, Perry noticed a trend toward bold flavors as well, specifically
spicy and savory, as well as flavor mixing. He also expects protein content to be more recognizable on packaging, given that more consumers are looking for protein in everything. Perry is also keeping an eye on international snack options.
“I think the Calbee Asian snacks could be a hit — Meiji Hello Panda, Pocky and Hi-Chew all brought incremental sales to the channel. I’m watching when Korean snacks are going to enter the market with Korean entertainment moving even more mainstream, especially with the younger generation,” he said.
Better-for-you options are also on Perry’s radar in 2025. “I think these brands are going to continue to grow as consumers are paying more attention to the ingredient label, whether it be nutritional facts, cooking oils or less ingredients, all leading to customers switching to healthier snacks.”
On the pricing front, Perry expects to see some challenges as some of the larger snack manufacturers pass on cost increases and decrease weights, especially with potato chips.
“I think legacy chip brands will be under pressure in 2025,” he added.
Nouria has been seeing pack sizes shrinking in the snack aisle. “Shrinkflation is a real thing,” Perry said. ”I think more companies are looking to offer multiple
pack sizes to offer customers a lowerticket option and a larger size to offer the best per-ounce value to customers.”
At present, Adams isn’t seeing much change to package sizes across the various snack subcategories, but he does expect size changes “will become the norm as companies realize they can’t continue to raise prices.”
“Even with the economic pressures on our consumers, we continue to see customers lean towards larger pack sizes,” Baer said. “Some of this is a result of the value that the consumer sees with the larger pack size.”
Many of Rutter’s stores are located off busy interstates, so often customers are seeking snack items that can last them for a longer duration during their trip, rather than fulfilling an immediate craving, Baer explained.
When it comes to meat snacks, Adams again expects inflationary pricing to impact sales. “I think sticks and steaks will be flat to a slight increase, but I expect jerky to be down,” Adams said. “Again, I think it all has to do with pricing. When bag jerky crosses the $9 price point there is an immediate decline in units.”
Nouria, by contrast, expects meat snack sales to rise in 2025. “We had
Salty snack dollar sales were flat (-0.2%) for the 2024 year ending Dec. 29, per Ciranca. Corn snacks were a bright spot for dollar sales, up 4.6% for the period. Dried meat snack dollar sales dipped 3.8%, while unit sales fell 6.8% in c-stores for the same time frame.
Source: Circana OmniMarket, Total U.S. Convenience data for the 2024 calendar year ending Dec. 29, 2024
The price per unit for nuts and seeds grew 10.7% in 2024, while the
Among the snack bar segment, nutritional/intrinsic health value bars (up 2.6%) fared best in dollar sales at c-stores for the 2024 calendar year ending Dec. 29, while granola bars saw the biggest decline in both dollar sales (down 11.7%) and unit sales (down 14.9%) for the period, per Circana.
Source: Circana OmniMarket, Total U.S. Convenience data for the 2024 calendar year ending Dec. 29, 2024
a good 2024 with this segment with customers looking for healthier snacks, higher protein, etc.,” Perry said. He expects sticks to outperform bags this year, as they did in 2024.
“It will be interesting to see what alternative meat options such as chicken, pork or “wild game” grow in 2025,” he added.
Nuts and seeds has never been a strong category for Adams at Huck’s, and he’s not expecting much change in 2025.
Nouria recently launched a line of private-label nut and fruit mixes, which Perry noted were “off to a good start” sales-wise. “This will really help us drive sales growth in 2025 in this segment,” he said.
He’s also watching to see how some new innovative products coming to the segment perform.
“I am excited to see how the Dunkin’ partnership with Kars will perform. Being in the Northeast, Dunkin’ has such a strong presence,” Perry said. “The Smackin’ sunflower seed brand has caught my attention with new flavors like garlic parm
and churro and social media presence.”
At Rutter’s, “hot” continues to be the big trend for flavor profile in nuts and seeds, Baer said. “This year pickle flavors, such as dill, seem to be leading the charge for taste innovation.”
At Huck’s, “snack cakes are on fire, and continue to grow year over year,” Adams said. “Other sweet snacks is a soft category overall, but there is some innovation coming — Post Malone and Selena Gomez Oreos, for example. The innovation might drive some sales.”
Nouria expects growth in the sweet snack segment in 2025. “Nutrition/granola bars performed very well in 2024,” Perry said. “Our private-label pastries and sweet snacks continue to be some of our highest-performing items in the store. We are planning some LTOs this year as well, which should drive some excitement to the line.”
Perry anticipates that both better-foryou and indulgent products will perform well in 2025 while “middle of the road” offerings could struggle. “There are
more people looking for healthier options or people who may be eating less, but when they do, they want something that is really going to taste good and be extra indulgent,” he explained.
Cookies, on the other hand, Perry expects to have a tough year in 2025, depending on how innovation performs.
“This segment faces a lot of the same challenges that chocolate and candy do,” he explained, both in terms of rising costs and pressures on ingredient pricing. Plus, he pointed out that cookies, like candy, are “another segment that suffers as consumers switch to healthier products or are GLP-1 users.”
“I also don’t feel the cookie innovation I’ve seen so far for 2025 is going to be that impactful — but I could be wrong. It will be interesting to see,” he added.
Adams remains hopeful overall for the categories in 2025. “I think things will start improving quickly, but it is going to take time to get people out and spending money again,” Adams said. “When gas prices improve and people start seeing more cash in their pockets, I think the overall sales will get a bump.” CSD
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As dairy sales fall, retailers see opportunities in single-serve and flavored milks, as well as innovation in ice cream flavors.
Brad Perkins • Contributing Editor
SUCCESS IN DAIRY AND ICE CREAM means embracing flavor and experience.
“Flavored milks, especially single-serve options like chocolate and strawberry, continue to be popular,” said Nick Triantafellou, director of marketing and merchandising at Powell, Tenn.-based Weigel’s, which operates more than 80 c-stores in Tennessee.
Dairy milk overall fell 7.8% in dollar sales, while refrigerated white dairy milk, specifically, declined 9% in dollar sales for the calendar year 2024, ending Dec. 29, according to Circana, a Chicagobased market research firm. Flavored milk saw a smaller drop of 4.9% in dollar sales for the same period.
How can companies rebound from these decreases in each segment, including a fall of 26.6% in plant-based milk dollar sales?
“We expect to see a greater push for single-serve and ready-to-drink dairy products,” Triantafellou said. “The rise of grab-and-go culture influences purchasing behavior, and we are preparing for this by expanding our offerings in
those categories.”
Packaging and serving sizes will also matter greatly.
“Customers continue to trade down from the larger package sizes of milk,” said Kevin Platt, senior category manager at Nouria, which operates 172 stores across New England. “We continue to see increased sales in pints, quarts and half gallons, especially in flavored milk.”
Another area in milk sales that has become popular is protein drinks.
“Dairy-based protein drinks will continue to increase in sales in 2025,” said Mike Jackson, category manager for Carroll Motor Fuels and High’s Stores, which operates 60 stores in the Mid-Atlantic region. Jackson said customers use protein drinks as a meal replacement option.
In the ice cream segment, while package size matters, it’s mainly about flavors and quality.
“Customers use this category to indulge and reward themselves but have cut back on the number of times they
purchase,” Platt said.
Circana reported that overall ice cream/sherbet dollar sales fell 2% in 2024, with gains in ice milk (5.5%) and sherbet/sorbet/ices (25.5%). In all segments, flavors remain the important driver, whether it’s traditional indulgence or wanting to try something new.
“While classics like vanilla and chocolate remain staples, there’s a noticeable rise in demand for adventurous flavors and mix-ins, such as salted caramel, cookie dough and exotic fruit combinations,” Triantafellou said.
Ice cream remains about customers treating themselves. They want innovation and quality, whether it’s national favorites like chocolate and vanilla, regional preferences, or creative combinations.
“Ice cream is a staple of both our retail and foodservice programs,” Jackson said. “We offer a very high-quality ice cream, and the biggest thing that affects our sales is innovation. There are items that sell well everywhere, but (also) items that are more local that will drive customers to your store.” CSD
Milk and ice cream sales dipped across the board, with only other milk products seeing a slight 2% upswing in dollars, likely due to an 8.4% jump in price per unit.
Source: Circana OmniMarket, Total U.S. Convenience data for the 2024 calendar year ending Dec. 29, 2024
The health and beauty aid category is poised for growth as customers continue to seek out products with specific health benefits.
Kevin McIntyre • Associate Editor
C-STORE CUSTOMERS TODAY more than ever are focused on their personal health, both physical and mental. Retailers looking to capitalize on this growing trend will need to be vigilant when deciding which health and beauty aid (HBA) products to stock, ensuring health-focused customers can leave their stores satisfied.
Emily Ferguson, category manager at GetGo Café + Market, which operates nearly 200 stores across Pennsylvania, Ohio, Indiana, Maryland and West Virginia, noted that wellness products and supplements are shining in the HBA space today.
“Customers are looking for products that may provide real-time benefits like enhanced mental performance, hydration or increased energy,” she noted.
Marlborough, Mass.-based Yatco, operating 14 companyowned c-stores across Massachusetts, Connecticut and Rhode Island, has a positive outlook for the category given how health focused many customers are today.
“I think the category in general will continue to grow as consumers continue to focus on health more than ever before,” mentioned Hussein Yatim, vice president, Yatco. “I predict there will be many emerging brands in the supplements and healthcare space that find a fit in a c-store.”
Ferguson also added that the family-planning subcategory in HBA is trending up, which she attributed to “increased product offerings and innovation,” such as its newly introduced
emergency contraceptive offering.
“Emergency contraceptives represent a significant portion of the family-planning category, and with the addition of the Cadence OTC Morning After Pill to our assortment, we can provide our customers access to a product that is driving increased demand,” she noted.
Since the product is “a higher-average retail item for the category, it is a productive SKU in our assortment,” she added.
Meanwhile, retailers are still contending with the lasting effects of the COVID-19 pandemic, which severely disrupted supply chain operations. As supply continues to improve, consumer behavior has not quite recovered.
“We are seeing a more price-conscious customer (today). During peak COVID, customers did not mind paying more in a c-store since it was a quick “in and out” shopping experience,” Yatim explained. “I think now, with the pressure of inflation, customers are more strategic on where they shop for their (HBA products).”
Ferguson agreed, but added she sees a light at the end of the tunnel.
“(The HBA category) has faced significant, lingering challenges with supply issues and shifting customer behaviors in the years following the height of the COVID-19 pandemic,” she said. “Supply continues to stabilize, allowing us to now return to more consistency in the category.” CSD
Customers continue to focus on internal health as they increasingly look for products with specific health benefits.
Source: Circana OmniMarket, Total U.S. Convenience data for the 2024
The changing tobacco/nicotine category creates alternative opportunities for c-stores.
Anne Baye Ericksen • Contributing Editor
IN THE TWILIGHT HOURS of the Biden administration, the Food and Drug Administration (FDA) released two decisions that could impact how convenience store owners and operators plot out inventory and market the tobacco/ nicotine category this year and for years to come. Meanwhile, as the Trump administration took office, retailers saw some regulation reprieve.
On Jan. 16, the Biden administration FDA authorized market orders for 10 ZYN flavors in each three milligram and six milligram nicotine strengths. This
decision is the first of its kind for nicotine pouches and allows stores to spice up backbars with Chill, Cinnamon, Citrus, Coffee, Cool Mint, Menthol, Peppermint, Smooth Spearmint and Wintergreen. Undoubtedly, it was welcome news for an already high-performing subcategory.
“Pouches and other modified-risk items have continued to be strong. These categories have always been a very important part of our business and for our specific geographic area. This year we look for the focus to shift to some new products and line extensions, which always bring a new interest from customers,” said Nathan Arnold,
director of marketing for Heath, Ohiobased Englefield Oil, which operates 117 Duchess Convenience Stores in Ohio and West Virginia.
On the West Coast, Jon Manuyag, director of marketing for Plaid Pantry, has observed a similar response. The Beaverton, Ore.-based convenience store chain owns and operates 110 retail sites in Oregon and Washington.
“Modern nicotine pouches/modern oral pouches continue to perform extremely well for our chain. As Plaid Pantry was an early adopter into this space many years ago, we have a high share of our market for volume and continue to
Smokeless tobacco sales grew by 13.8% in dollars and 10.6% in units during the past year despite a slight price per unit uptick. Within the segment, spitless tobacco sales increased the most (58.8% in dollars and 44.1% in units).
Source: Circana OmniMarket, Total U.S. Convenience data for the 2024 calendar year ending Dec. 29, 2024
grow share. We are positioned for continued growth for years to come,” he said.
In the Midwest, Sean Bumgarner, VP of Scrivener Oil Co., which runs 12 Signal Food Stores in southwest Missouri, has seen how demand outweighs supply at times. “Despite occasional stock
shortages, our sales (of pouches) have maintained a rapid upward trajectory,” he said.
Market research confirms the growth is not a regional phenomenon nor a fleeting trend. According to data from Chicago-based market research firm Circana,
for the 2024 calendar year ending Dec. 29, 2024, both chewing tobacco alternative and spitless tobacco, which includes pouches, dominated all other tobacco/ nicotine segments: posting gains of 45.4% and nearly 58.8% in dollar sales, respectively, and 33.8% and 44.1% in unit
Cigarettes saw a 3.8% dip in dollar sales and an 8.3% drop in unit sales with a 4.9% uptick in price per unit. Still, the segment notched over $50 billion in sales last year.
sales, respectively. Traditional smokeless product families, chewing tobacco and snuff, each experienced declines — 6.3% and 4.8% falloffs in sales, respectively, and 5.6% and 8.6% for units, respectively.
The second proclamation from the Biden administration FDA officials came in mid-January and has the potential to change the future of cigarettes. One week before transitioning to the new administration, the FDA issued a proposed rule change to reduce the maximum level of nicotine allowed.
“The proposed rule would cap nicotine levels at 0.7 milligrams per gram of product for cigarettes, smaller cigars and other combustible tobacco products. However, premium cigars and hookah tobacco are explicitly exempted from these new limits,” explained Jeremy Weiner, category director of cigars and premium products for Smoker Friendly. The Boulder, Colo.-based company is part of the family of stores owned and operated by The Cigarette Store Group, which also includes Tobacco Depot, Smoke ‘N Go, Havana Manor and Gasamat. By rule, the FDA opened a call for public comments on the change for up to 240 days. But just two days after President Donald Trump took office, a notice from the Department of Health
and Human Services noted that the FDA’s plans for nicotine limits had been moved to the long-term actions category, meaning they are now a low priority. The deprioritization, however, is unlikely to impact the comment period, which is still open through September, but time will tell what happens after that.
In a major win for the industry, the day after President Trump took office, the FDA also withdrew its two proposals that would ban the sale of menthol cigarettes and flavored cigars. David Spross, executive director of the National Association of Tobacco Outlets, told CStore Decisions that it is unlikely the menthol and flavored cigar bans will be reintroduced under the Trump administration, however it’s possible they could reappear under a future administration. If this were to occur, the final rules would have to be sent back to the Office of Management and Budget before they could be published and implemented.
While these legislative victories are reason to celebrate, cigarettes are nonetheless continuing to lose traction.
“The cigarette segment has continued to decline year over year. However, through loyalty, signage and other efforts, we have declined at a slower rate than our trading area. While we do offer some premium cigarettes, these have been less of our focus than the traditional brands,” said Arnold.
Circana reported that convenience
stores nationwide earned $51.3 billion from cigarette sales in 2024, but that’s down almost 3.8% year over year. Unit sales last year added up to 5.47 billion, but that fell by 8.3%.
Another regulatory decision for the segment came from the U.S. Supreme Court in November when it declined to hear the tobacco manufacturers’ petition to dismiss the mandated cigarette warnings rule. Established in 2020, manufacturers are required to print a warning on at least one-half of both sides of packaging that includes illustrations of the health consequences of smoking. The rule applies to advertising materials, too, such as countertop displays or in-store signage. After years of lawsuits traversing the myriad courts, the U.S. Court of Appeals for the Fifth Circuit affirmed an earlier decision that photorealistic medical portrayals would convey the pertinent health facts and therefore didn’t impinge on companies’ rights and met the legal standards for compelled speech. The high court’s denial keeps that decision in play. The lawsuit now returns to a lower court to hear petitioners’ claims that the labels violate the Administrative Procedure Act. The FDA was originally expected to begin enforcement in December 2025, but on Jan.14, the District Court entered a preliminary injunction and postponed the rule’s effective date until entry of final judgment in the litigation.
With a 10% increase in price per unit, cigar unit sales fell by 7.9%, but dollar sales remained positive with a 1.4% increase. Within the segment, little cigars saw the biggest change with a steep 45% drop in dollars.
Source: Circana OmniMarket, Total U.S. Convenience data for the 2024 calendar year ending Dec. 29, 2024
Generally speaking, large mass and premium cigars had a stable year in 2024. Thanks to a price increase of 10.5%, the large mass segment grew slightly (2.2%) in dollar sales, and premium cigars dropped a bit (-2.1%). Little cigars, however, experienced a 45% loss in dollars year over year on a more than 73.4% drop in units. Of course, flavor bans impacted this subcategory whereas premium cigars have been exempted. That probably will be an issue again this year as more cities contemplate enacting local restrictions, such as the new one in Denver.
“The city council passed the ordinance with an 11-1 vote, and the ordinance was signed by the mayor on Dec. 18. It will go into effect on March 18 and will affect six of our locations,” said Weiner.
Cigar accessories, on the other hand, recorded a very good year, per Circana. In 2024, accessories specifically designed for cigars cashed in more than $235 million for c-stores. That’s a jump of more than 15% in sales.
The biggest development for the vape segment in 2024 was basically no change to the slow rollout of premarket tobacco application (PMTA) decisions. As of last month, the FDA had granted only 34 market orders, mostly for disposable e-cigarettes, which have been excluded from the federal flavor restrictions.
Rather, more states set out to mandate databases of authorized flavored vape products to clarify confusion. More than 24 registry laws were proposed last year, with six states gaining governor signatures. However, both Utah’s and Iowa’s enactments, which were supposed to begin this year, have been put on ice for the moment pending the outcomes of lawsuits. Utah stores are still able to sell vape products not on the list until a legal decision is reached. In Iowa, an early March hearing is slated for the courts for additional motions.
“While some sort of list of authorized or provisionally authorized products will be necessary, presently, the hurdles to
marketing granted orders are still too high for most manufacturers. I expect to see a greater push for directory laws during the 2025–26 sessions,” said Alex Clark, CEO, Consumer Advocates for Smoke-free Alternatives Association.
Additional flavor bans at the state and municipal levels still pose issues for the vape sector in c-stores.
“We are now one year into a flavor ban in Columbus, Ohio. While we are waiting for this to be overturned and hopeful it will be this year, we continue to see a decline in sales. Flavored tobacco customers can cross city and municipality lines and purchase these items outside of Columbus. It has had a negative impact not only on this category, but other categories within these impacted stores,” said Arnold.
Sales data from Circana shows vaping products declined in dollar and unit sales by 9.1% and 12.3%, respectively, in 2024. Interestingly, the vaping accessories subcategory experienced a bump in both sales gauges (18.6% and 30.8%, respectively). The cross functionality with
Electronic smoking devices dropped in dollars and units during 2024, 8.6% and 10.9%, respectively. However, vaping accessories saw a jump in sales, likely due to a decrease in price per unit.
cannabis vaping could be a contributing factor for this positive performance.
Additionally, last year saw a greater push on enforcement. For example, a multiagency federal task force seized an estimated $76 million worth of illegal imports of unauthorized e-cigarette products last fall.
Perhaps the biggest market influence on vape sales right now comes from modified-risk offerings.
“I’m not sure if the recent market authorizations for ZYN will accelerate adoption of nicotine pouches, but that may be something that cuts into the relative dominance of vaping. The popularity of nicotine pouches continues to grow, and I think more and more people who smoke are going to turn to them as they move away from cigarettes,
or start looking for alternatives they can use in smoke-free/vape-free areas,” Clark reflected. “I’ve always seen the two products as complementary and I’d like to see more e-liquid companies entering the category.”
Pouches aren’t the only modified-risk products hitting backbars right now. The FDA is accepting public comments on modified-risk renewal applications for iQOS 3.0 and 2.4 system holders and chargers plus HeatSticks in Amber, Green Menthol and Blue Menthol.
Herbal cigarettes is an alternative catching the attention of tobacco/nicotine category managers, too.
“This is on our radar, but we’re not
moving forward with it at the moment,” noted Manuyag. “We’re waiting for large distributor partners to carry these items, which will provide additional layers of risk control. For now, we’re taking a wait-andsee approach to observe the performance and consumer demand for herbal products and CBD-related items.”
Indeed, interest in cannabidiol (CBD) items seems to be a bit mercurial at the moment. According to Circana, some CBD products posted extraordinary gains, while others incurred substantial losses. The top sellers for 2024 were premixed cocktails/coolers/hard seltzers with more than 2,882.8% growth, whereas sleeping aids fell by 85% in dollar sales. Interestingly, tobacco accessories within the CBD silo grew by 795.6% in dollar sales and 144.1% unit sales.
CBD grew 11.7% in dollar sales in 2024, despite a 3.8% downturn in unit sales. Overall, the category experienced a 16.1% upswing in price per unit. Segments such as tobacco accessories soared, whereas others including vitamins and non-chocolate candy fell.
Source: Circana OmniMarket, Total U.S. Convenience data for the 2024 calendar year ending Dec. 29, 2024
In fact, tobacco accessories overall for convenience stores posted profits, up by 6% year over year for dollars although units rolled in flat at 0.7% for calendar year 2024 ending Dec. 29, per Circana.
At Duchess, Arnold added emphasis to these add-ons last year.
“Our display and marketing efforts for accessories, papers and lighters have changed over the last year. Some additional SKUs in these categories have been added to meet the demand from customers,” he said.
Scrivener Oil’s Bumgarner also plans to reassess the tobacco/nicotine category.
“While we have not altered our displays or marketing efforts so far, we plan to implement changes this year to
prioritize our high-growth products. This will include reducing the space allocated to slower-moving or declining products,” he said.
With cigarettes and other tobacco products among the top five profit-
producing categories for convenience stores, per NACS, category managers cannot afford to be stuck in the past when it comes to inventory formulations. Adding flexibility to planograms that makes room for alternatives empowers stores to respond to customer trends and keep backbars busy. CSD
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C-store retailers must understand customer needs and find the best methods to manage and update inventory.
Emily Boes • Senior Editor
WITH INNOVATION COMES a changing product selection, and convenience store retailers must constantly keep pace with new trends while staying a reliable source for their market area’s consistent purchases. CStore Decisions caught up with Jon Fleck, merchandising manager at Cenex Zip Trip, which operates 38 locations in seven states, to hear his thoughts on and how he handles product management.
{CStore Decisions (CSD)} How do you determine your product selection?
{Jon Fleck (JF)} We have 38 stores in seven different states with no more than two stores that are laid out the same because of acquisitions. We work with Core-Mark and their Center of Excellence program to determine our sets based on our store size, room for shelving and displays, plus our purchases, along with purchases from their other customers in the regions we do business in. They show us items that move well out of their warehouse that we don’t carry, and we work those items into the stores. We also do “SKU Rationalizing” by looking at our scan data and deleting slower-moving items.
{CSD} How do technology and automation play a role in your inventory management?
{JF} We monitor turns on our items either by product category or by individual universal product code (UPC) scan data.
We know there are certain categories that the turns are going to be slower than others, but we still want to make sure we carry those types of items that the customers want. Because all our inventory audits are done by UPC, we can determine the exact items missing when an inventory comes up short. Technology makes this possible.
{CSD} How do you balance a consistent, reliable offering with new trends?
{JF} We never want a customer to ask us about an item they saw in one of our competitors that we don’t already have. In many of our locations, we have a section near the front endcap that has new items. In the past, we had small tables near the checkstand for new items to see if they sell well enough to put them in our actual sets. We still want to take care of those old friends — those items that continue to sell day in and day out — but we also must stay on top of this changing landscape.
{CSD} What role do niche/unique products play in your product assortment?
{JF} Everyone is selling Pepsi, Coke, Frito-Lay products, Hostess and Jack Link’s. We try to bring in products that are local to the area our stores are in. Whether it is Montana Silversmiths jewelry or Twisted Bee pretzels made in South Dakota, or shirts and hats from Blue Peak Creative and Last Best in Missoula, we want a little
local offering in our locations. You must have something that differentiates you from the rest of the pack.
{CSD} How do you handle excess inventory or merchandise that isn’t selling well?
{JF} We try to buy as much product that we can that is guaranteed from the distributors. If sales aren’t what we expect, then we return it after three to four months. If it isn’t guaranteed, we will drop it down to cost to blow it out, and whatever remains is sent to the food bank or homeless shelters. We feel it is better to do that than to plug up the stores with non-moving product.
{CSD} What is the biggest challenge that convenience store merchandisers have today?
{JF} For some stores it is the lack of space near the high-traffic areas. Some customers you will never get past the checkstand area, and many of our stores have the checkout right when you walk in the store. Each vendor you talk with tells you how well their product will sell if it is sitting on the checkstand, and of course, I tell them everything does. We need items that are eye catching that can sell throughout the store. In our stores, we are constantly moving displays and products around to different areas, especially if they aren’t selling, to see if they sell better in another location.
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